Digital storage giant Iron Mountain has sold a 2.1 million industrial portfolio to Blackstone for $358 million.
JLL Capital Markets brokered the sale-leaseback of the 13-property portfolio across California, Northern New Jersey and the Lehigh Valley.
The portfolio properties are situated across 122 acres of infill land and enjoy convenient interstate access due to their central locations within each respective market.
JLL marketed the property on behalf of the seller, Iron Mountain Incorporated, the storage and information management services company enabling digital transformation.
Blackstone Real Estate Income Trust, Inc. purchased the assets.
Iron Mountain will remain in these facilities under an initial 10-year lease term, with options to renew up to an additional 20 years.
The transaction is part of Iron Mountain’s ongoing capital recycling program, and Iron Mountain expects to utilize the proceeds to reinvest in higher growth areas of its business.
The JLL Capital Markets team representing the seller was led by Senior Director Jason DeWitt; Senior Managing Director Robert Dmytryk; Senior Managing Director and Co-Head of JLL’s Industrial Capital Markets group John Huguenard; Senior Managing Directors Brian Shanfeld, Mark Detmer, John Plower and Bruce Strasburg; Director Jordan Avanzato; and Analysts Anthony Walters and Brian Longee.
“The closing of this transaction demonstrates the market’s increasing appetite for high-quality and well-located industrial real estate,” DeWitt said. “For Iron Mountain, the portfolio sale is a continuation of their on-going capital allocation strategy, which aims to unlock capital for investment into key business growth drivers while maintaining long-term control of their real estate operations.”